Delhi Abolishes 21-Year Renewal Rule Under Shops and Establishments Act:
The Delhi government has eased compliance for businesses by abolishing the mandatory 21-year renewal requirement under the Delhi Shops and Establishments Act, 1954. The move aims to simplify formalities, reduce regulatory burden and support a smoother business environment in the capital.
Key Policy Change Announced
The Labour Department has removed the renewal clause under Section 5 of the Act. Earlier, every establishment had to seek renewal once every 21 years from its date of registration. Eliminating this step converts registration into a one-time process.
Impact On Business Operations
Officials stated that the decision will benefit traders by removing a long-pending procedural hurdle. The government expects the simplified framework to improve ease of doing business, especially for small and medium commercial establishments across Delhi.
Fully Digital Registration System
The registration process remains entirely online. No documents or fees are required, and certificates are issued immediately based on submitted information. This system has been functioning since 2009 and is expected to operate more efficiently with the removal of the renewal rule.
Exam Oriented Facts
Renewal under Section 5 of the Delhi Shops and Establishments Act has been abolished.
Registration is now a one-time, paperless and fee-free process.
The system has been fully online since 2009.
The reform aims to improve ease of doing business in Delhi.
Support From Trade Stakeholders
The Labour Minister noted that traders will gain significant relief as they no longer need to track renewal cycles. The government expects the reform to promote transparency and encourage more entrepreneurs to formalise their businesses in the national capital.
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